Rolling coverage of the latest economic and financial news, as nervous investors push the US dollar to a two-month high
- Introduction: Pound hits two-month low against strong dollar
- BofA: UK economy to stagnate
- Coming up: Eurozone and UK PMI surveys
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
“We struggle to see how the economy can grow in the fourth quarter with escalating lockdown measures, fading stimulus and Brexit risks.”
It seems to be a matter of degree rather than kind, but a couple of crucial variables are changing the prevailing narrative. One: fresh US fiscal support may not arrive before the US Presidential election. Two: Europe’s economic recovery is at risk from the latest wave of COVID-19 infections and lockdowns
The notion of a broad-based lift in global economic activity, that would crucially narrow the performance gap between the US economy versus that of the rest of the world, has been called into question. Not that such a thing can’t or won’t occur, but that instead, perhaps its timeline has been slightly pushed back.
The $USD continues its ascent this AM sending the Euro and Sterling markedly lower ahead of flash PMIs. Investors bracing for impact of rising virus cases on the economic recovery in Europe
GBP -0.3% to $1.268
EUR -0.2% to $1.168
A full recovery is likely to come only when people are confident it is safe to re-engage in a broad range of activities